Five reasons video ads will continue to lead in 2020

Note: Verizon Media is now known as Yahoo.

Earlier in the year, Verizon Media surveyed nearly 300 senior marketing professionals across the industry to get their perspective on the importance of video advertising and the ad formats that provide their greatest return on investment.  The research underscored the important role video advertising was going to play in 2020. 

Fast-forward to today: with major events postponed and advertising budgets under scrutiny, marketers are under greater pressure to find the most effective means to share their messages of hope and inspiration. For many, that means an even greater reliance on video advertising, especially across social and digital platforms.

Read on to see our key insights on where the industry is likely to focus: 

Premium video is king 

Almost all (96%) advertisers will be investing in at least one video ad format this year, and more than three-quarters say they plan to invest more in premium video content in 2020. The reason is ROI: Two thirds say video will continue to offer a higher return than other ad formats, with in-stream (40 percent) and branded content (31 percent) delivering the most successful campaign results.

In-stream ads will remain the most effective 

Last year more than 60 percent of brands deployed pre-, mid-, or post-roll ads across social and digital platforms, making it the most popular format. In 2020, 68 percent plan to use in-stream video ads, and more than half will maintain or increase their budgets. Branded video content was a strong second, with 63 percent planning to use it in 2020 and 45 percent saying they planned to maintain or increase their investments.

Short formats win out over long 

Videos of 30 seconds or less will continue to grow in popularity. Ninety-four percent of those surveyed plan to maintain or increase their investment in short-form video ads over the coming year. Nearly one in four executives say they intend to spend less on long-form video in 2020. 

Shoppable and Interactive poised for growth

We asked marketers and advertisers which emerging formats they planned to invest in during the course of 2020. Both Interactive and Shoppable video ads stood out here. Roughly a third of marketers told us they planned to experiment with these formats in 2020, nearly double the number from last year.   

Digital and mobile are on the rise

In our survey, 36 percent plan to invest more in Connected TV ads, while 30 percent intend to increase their spend on mobile video. As more communities shelter in place and employees continue to work from home, Internet usage and video consumption are spiking. That’s likely to have an even greater impact on video advertising spend. 

Nearly nine out of ten executives surveyed were excited about the innovations coming to video advertising in 2020, and as we all adjust to the new normal, agencies and marketers can expect video to play an even bigger role. 

Source: Verizon Media Video Advertising Study, January 2020

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